After call with von der Leyen, Trump threatens to extend 'Liberation Day' tariffs to the EU
- Donald Trump said after a call with Ursula von der Leyen that the EU has until July 4 to ratify last year’s trade deal. - Trump warned EU tariffs would jump to “much higher levels” if the bloc misses the deadline, after earlier threatening 25% duties on EU cars. - The threat lands as courts keep narrowing Trump’s tariff powers, making the EU fight both economic and legal.
Tariffs are back at the center of the U.S.-Europe relationship — again. This time the immediate trigger was a phone call between Donald Trump and European Commission President Ursula von der Leyen on Thursday, May 7. After the call, Trump said he would give the EU until July 4 to approve and implement last year’s trade deal with the U.S., and he warned that if the bloc misses that deadline, tariffs would jump to “much higher levels.” (cnbc.com) ### What changed after the call? The practical change is the deadline. Trump had been escalating pressure on Europe and had just threatened to raise tariffs on EU-made cars and trucks from 15% to 25%. After speaking with von der Leyen, he effectively paused that immediate escalation and replaced it with a br(cnbc.com)day — or face a new tariff hike. (cnbc.com) ### What deal is he talking about? He is talking about the U.S.-EU trade framework struck in Turnberry, Scotland, in July 2025. Under that framework, the U.S. kept a 15% tariff on most EU goods, including autos and auto parts, while the EU committed to cut remaining tariffs on U.S. goods and widen market acc(cnbc.com)eps needed to deliver its side. (whitehouse.gov) ### Why isn’t the EU just done already? Because the EU is not one government with one switch. The European Parliament and member states still have to translate the framework into actual legislation, and that process has turned political. Some lawmakers w(whitehouse.gov)thens the people in Brussels who argue the bloc should not rush to lock in concessions. (euronews.com) ### Is this the same as the “Liberation Day” tariffs? Basically, yes in spirit, but not exactly in form. Trump’s April 2, 2025 reciprocal-tariff order — the one he branded around “Liberation Day” — set up broad new tariffs using emergency powers tied (euronews.com)orcing Europe to finish a separate bilateral deal. (whitehouse.gov) ### Why does the legal backdrop matter? Because Trump’s tariff leverage is getting tested in court. The latest threat came just hours before a U.S. trade court ruled(whitehouse.gov)t the legal foundation under some of those moves looks shakier than it did a few months ago. (cnbc.com) ### What is von der Leyen saying? She is trying to keep the negotiation alive without looking weak. Her line has been consistent: tariffs hurt consumers and businesses, Europe wants negotiated tariff reduction, and the bloc is still committed to implementation. After the call, she said “good progress” was be(cnbc.com)s are still on, but the paperwork is not finished. (cnbc.com) ### Who gets hit if this blows up? First, importers and manufacturers — especially autos, parts, machinery, chemicals, and any company with supply chains crossing the Atlantic. A tariff fight between the U.S. and EU is not like a niche trade spat. These are the world’s two biggest economic blocs, and even “t(cnbc.com)er Leyen has been warning since April 2025 that this kind of tariff escalation means more uncertainty, more bureaucracy, and higher costs. (ec.europa.eu) ### So what matters now? The next real checkpoint is early July. If EU institutions can finish the deal, Trump gets a win and the 15% framework survives. If they cannot, he has set himself up to argue that Europe broke the bargain and deserves another round of tar(ec.europa.eu)neath it and auto tariffs sitting right at the edge. (cnbc.com)
